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After the roller coaster ride of Bitcoin, some investors wish to invest in more stable cryptocurrencies. Welcome 'stablecoins'. A substitute for normal cryptocurrencies, these are tokens that are backed by real-world assets. Stablecoins play an important role in the crypto ecosystem. The reason investors are increasingly investing in the best stablecoins is that they empower more people to harness the benefits of the blockchain without the risk of phenomenal market fluctuations.
Stablecoin is a type of cryptocurrency whose value is quite stable as it is pegged to a safe asset, for example, fiat currency. Let's look at the five safest stablecoins you can invest in in 2021.
Theoretically, Tether is a peer-to-peer blockchain and open-source cryptocurrency. However, it is the most secure stablecoin whose value is pegged to the US dollar. In simple terms, a U.S Tether token is $1 all time. Tether is a result of the combined power of science and academia. Hence, if you observe, Tether is not majorly affected by market fluctuations. Further, it is one of the popular stablecoins and is also very helpful for transactions that often face difficulty when exchanging money into USD. Unlike other cryptocurrencies, Tether has very few risky elements. Hence, it is considered a stable and safe cryptocurrency to buy. If you see it from a different angle, Tether is something that you can buy and hold cash or any other foreign currency.
Current Price: US$1.00
It is the first regulated stablecoin backed by the US Dollar. It is known for its simplicity, transparency, and reliability as it doesn't use any special algorithm. Introduced in early 2018, it is one of the best staking stablecoins that can connect with the next-gen and be held for a longer period of time. It was introduced to hedge against market volatility and create new opportunities for people to invest in True USD rather than Bitcoin or Ethereum.
Current Price: US$1.00
Utopia USD Stablecoin is the first anonymous stablecoin backed by the US dollar. It ensures a secure, fast, and liquid payment method. It is designed to maintain 1:1 parity with the US Dollar. The U USD provides safe and secured transactions, a lack of political and geographical boundaries when making a transfer, non-interference of state structures in the personal financial affairs of citizens, tax-free savings, and the lowest fees.
One more best stablecoin to use is USD Coin. It is backed by real-world assets and initially operated only on the Ethereum blockchain. However, it has now expanded to Solana and Algorand blockchains. Why USD Coin is so special is because, unlike Tether, USD coin has better transparent funding and auditing processes. It offers high speed and reliability.
Current Price: US$1.00
One more U.S regulated stablecoin is Binance USD. Fully backed by U.S dollars, Binance USD ensures faster ways to fund your transactions and can be used as a medium of exchange. Further, you can even use it as a method of payment in the global crypto space. It is approved and regulated by the New York State Department of Financial Services with an aim to ensure the highest level of customer protection. Moreover, users don't have to pay any fees when creating or redeeming BUSD.
Current Price: US$1.00
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Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.
